Effect of Psychological Contract Violation on Organizational Commitment, Trust and Turnover Intention in Private and Public Sector Indian Organizations

Abstract

The present study examined the effect of psychological contract violation (PCV) on organizational commitment, trust and turnover intention among the employees of private and public sector Indian organizations. Data were collected from 200 middle-level managers selected randomly from private and public sector organizations in Delhi and National Capital Region of Delhi. PCV was measured by Robinson and Rousseau (1994) scale, Commitment was measured by Meyer and Allen scale, Trust by Robinson and Rousseau (1994) scale and Turnover intention by Cammann et al. (1979) scale. The mean values showed the prevalence of contract violation more in private sector than in the public sector. Regression Analysis showed that the affective commitment, trust and employee turnover were more influenced by contract violation in public sector than in the private sector. On the other hand, continuance and normative commitment were influenced more by contract violation in private sector than in the public sector. The predictors which came out to be significant were for affective and continuance commitment only. Results were interpreted in the light of existing theoretical framework and Indian sociocultural context. The implications for the present research for theory and practice were also suggested.